Investor Presentaiton
NexPoint Hospitality Trust
Top 10
Exposures
1.
2.
3.
NexPoint Storage
Partners
NexPoint Homes
NexPoint Real
Estate Finance
4.
EDS Legacy
Partners
5.
IQHQ
QuarterNorth
6.
Energy
7.
NexPoint
Hospitality Trust
8.
CCS Medical
9.
Freddie Mac 21K-
F103
10. Easton Village
Ventures
INVESTMENT BACKGROUND
NexPoint Hospitality Trust (NHT) is a publicly traded real estate
investment trust (REIT), with its units listed on the TSX Venture
Exchange under the ticker NHT.U. NHT is focused on acquiring, owning
and operating well-located hospitality properties in the United States
that offer a high current yield and in many cases are underperforming
assets with the potential to increase in value through investments in
capital improvements, brand repositioning, revenue enhancements, or
operational improvements. NHT owns branded properties sponsored
by Marriott, Hilton, Hyatt, and Intercontinental Hotels Group, located
across the U.S.
INVESTMENT UPDATE
As of June 30, 2023, NHT's current portfolio consists of 9 properties with
1,433 rooms, located throughout the U.S., in the full-service, select-
service, limited-service, and extended stay hospitality categories. Each
property has a long-term franchise agreement with Marriott, Hyatt,
Hilton, or InterContinental Hotels Group sponsored brands. NHT
believes each property in the portfolio has the opportunity to generate
outsized market share improvements and topline increases as leading
select-service, limited-service, or extended-stay hotels in their
respective submarkets.
For the nine months ended September 30, 2023, occupancy across the
current portfolio was 70.9%, Average Daily Rate was $156.06, and
RevPAR was $111.32. NHT continues to see recovery in the business
travel sector.
As of June 30, 2023, NHT had total assets of $296.7 million. NHT had
accounts payable and other accrued liabilities of $28.2 million, net
indebtedness of $190.2 million, notes issued to affiliates of $82.7
million, redeemable Class B Units valued at $0.1 million, and
unitholders' deficit of $10.3 million.
On June 29, 2023, the DoubleTree Olympia property was sold. On
August 11, 2023, NHT announced that it had entered into an agreement
for the sale of its Holiday Inn Express hotel property in Nashville,
Tennessee for $120 million. The asset sale is expected to close in 2023.
INVESTMENT HIGHLIGHTS
Initial Investment
% of HFRO
Investment
Investment Type
Industry
2020
4.45%
$46.6M
Convertible Debt
Real Estate - Hotels
NOVEMBER 2023
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